Boots, the well-known retailer, also manufacture many of the pharmaceutical and health care products sold both in their and other retailer’s stores. As part of the plans to expand production capacity BCM wanted to review the inbound retail supply chain strategy for the packaging materials- the bulkiest part of the inbound operation.
The first task was to determine how much stock Boots needed to hold on site. Boots had, like many manufacturers, measured stock cover based on the financial value of stock held compared to the value of stock used, and the results of this suggested that the cover was somewhat greater than one might expect. Further analysis, however, revealed a large percentage of the stock to be slow moving or probably obsolete, and that regular lines were being controlled very well.
Having determined the required storage capacity, The Logistics Business then looked for options on the existing site to locate that amount of stock, and techniques to improve the flow into the manufacturing building. As this is a Grade 1 listed building, solutions had to have minimal visual impact.
The Logistics Business was able to present to Boots Contract Manufacturing a set of proposals for how the inbound needs of the business could be met over the coming years.